the
Lebanese Government has made substantial progress in strengthening the
central government, rebuilding government institutions, and extending its
authority throughout the nation. The LAF has deployed from Beirut north
along the coast road to Tripoli, southeast into the Shuf mountains, and
south to Sidon and Tyre. Many militiamen from Christian and Muslim groups
have evacuated Beirut for their strongholds in the north, south, and east of
the country. Some heavy weapons possessed by the militias have been turned
over to the government, or sold outside the country, which has begun a plan
to integrate some militiamen into the military and the internal security
forces. Lebanon and Syria signed a treaty of friendship and cooperation in
May 1991. Lebanon continues to be partially occupied by Syrian troops, which
are deployed in Beirut, its southern suburbs, the Bekaa Valley, and northern
Lebanon. Iran also maintains a small contingent of revolutionary guards in
the Bekaa Valley to support Lebanese Islamic fundamentalist groups. Israel
withdrew the bulk of its forces from the south in 1985, although it still
retains troops in a 10-km-deep security zone north of its border with
Lebanon. Israel arms and trains the Army of South Lebanon (ASL), which also
occupies the security zone and is Israel's first line of defense against
attacks on its northern border. The following description is based on the
present constitutional and customary practices of the Lebanese system.

:Lebanon Economy

Overview:
Since 1975 civil war has seriously damaged Lebanon's economic
infrastructure, cut national output by half, and all but ended Lebanon's
position as a Middle Eastern entrepot and banking hub. Following October
1990, however, a tentative peace has enabled the central government to begin
restoring control in Beirut, collect taxes, and regain access to key port
and government facilities. The battered economy has also been propped up by
a financially sound banking system and resilient small- and medium-scale
manufacturers. Family remittances, banking transactions, manufactured and
farm exports, the narcotics trade, and international emergency aid are main
sources of foreign exchange. In the relatively settled year of 1991,
industrial production, agricultural output, and exports showed substantial
gains. The further